Corporate Law Personal liability in L.L.C. (contractor)

[TonyG]

Short and simple.....Father-in-law builds houses (just getting started in business). He starts business (L.L.C). I take test and become the licensed contractor for the business (qualifying representitive). I am 1% partner in business, and license holder for the business (contractor). I am not licensed as an individual, only as an entity of the L.L.C.. What is my liability as the "contractor" if someone falls off the roof during construction, or if "the roof falls in" after construction. I am basically a silent partner and have little to do with day to day operations. (I only make $1000 per house). Wondering about risk/reward ratio.

 

[Michael Wechsler]

Originally posted by TonyG
Short and simple.....Father-in-law builds houses (just getting started in business). He starts business (L.L.C). I take test and become the licensed contractor for the business (qualifying representitive). I am 1% partner in business, and license holder for the business (contractor). I am not licensed as an individual, only as an entity of the L.L.C.. What is my liability as the "contractor" if someone falls off the roof during construction, or if "the roof falls in" after construction. I am basically a silent partner and have little to do with day to day operations. (I only make $1000 per house). Wondering about risk/reward ratio.

In a limited liability corporation and a situation like this one, you would not incur liability such as this which the corporation would incur. This is similar to general corporations which are fictional persons and insulate you from personal liability. The situation would be different if this was a partnership, where you could incur liability.